• USD/MXN edged higher on Monday as U.S. dollar staged a modest rebound recovering some ground after a sharp decline on Friday triggered by weaker-than-expected labor market data.
•However, on Monday, the greenback found support amid short-covering and cautious market sentiment ahead of this week’s key economic releases, including ISM services data and jobless claims figures
• Meanwhile, Last week President Donald Trump extended the negotiating deadline with Mexico by an additional 90 days, temporarily easing trade tensions between the two countries.
• The extension came as part of broader efforts to reach a long-term agreement on contentious issues such as tariffs on metals, automobiles, and fentanyl-related goods.
• The decision to delay further tariff hikes provided short-term economic and diplomatic relief to Mexico, which has been under pressure to revise its trade practices and remove non-tariff barriers.
• Immediate resistance is located at 18.910(50%fib), any close above will push the pair towards 19.090 (61.8%fib).
• Support is seen at 18.732(38.2%fib) and break below could take the pair towards 18.514(23.6%fib).
Recommendation: Good to buy around 18.800 with stop loss of 18.500 and target price of 19.200
